Tourism Industry of India Research Paper

Pages: 13 (4599 words)  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: College Senior  ·  Topic: Recreation

This is the overall situation of tourism industry in the Asian market and some of the important and significant countries of the region. In order to further investigate and decide to invest in tourism industry of any particular industry one has to evaluate different important factors of that particular country which will impact the demand, growth projections, and investment in the tourism industry.


Macro Economic Indicators and Market Demand:


For the last few years tourism in India has been growing because India is rich in history, destinations, diversity in religion, beauty, cultural heritage etc. India has also been able to attract large number of visitors because of the advancement in medical industry as well as IT industry. India travel and tourism industry, according to the world travel and tourism council (WTTC), would grow and will earn revenue of $42 billion in 2010 contributing 3.1% of the total GDP. Beside this, tourism industry would almost generate revenue of $118 billion and its contribution would be 8.1% of the total GDP as tourism industry directly and indirectly impacts other businesses in the country (IBEF, 2011).

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Every year more than 5 million annual foreign tourist come to India. As Indian tourism industry generated revenue of about $100 billion in 2008 so it is expected that it will grow further at an annual growth rate of 9.4%. India has the highest 10-year growth potential so according to WTCC from 2009 to 2018 India will be one of the most favorite destinations for tourists. Travel and Tourism competitiveness report in the year 2007 India was ranked 6th and 39th in terms of price competitiveness and safety respectively (IBEF, 2011).

Research Paper on Tourism Industry of India and Assignment

Medical and IT industry are two major industries that attracted large number of foreign visitors. The medical tourism industry of India is currently experiencing a growth of 30% annually and by the end of 2015 this industry is expected to become an industry of Rs.95000 crore. By the end of 2012 the expected value of medical tourism to India would become as large as $2 billion. People are finding India as a good place for medical care because of good facilities and low cost along with qualified doctors. Every year almost 150,000 tourist come to India for economical healthcare operations (Connnell, 2006).

Because of the different international events foreign tourists are expected to increase. Large numbers of sports fans, from different parts of the world, are going to attract by Indian Premier League, Common wealth Games and Formula 1. Also with better infrastructure, better facilities, low-cost airlines, more efficient road connectivity, and more resources are going to help Indian tourism Industry.


Indonesian tourism industry is professed to an important element and constituent of the economy of Indonesia. The Indonesian government recognizes and understands the importance of the tourism as a key and vital source of foreign exchange revenues, also the number of the international visitors increased by 3.6% to 6.45 million visitors' arrivals, in the year 2009 (Nenad, 2011).

According to the cultural and tourism minister of Indonesia, Jero Wacik, around 7 million international visitors and tourists visited Indonesia in the year 2010 and this number of international visitors' arrival is expected to increase to 7.7 million in the year 2011. Jero Wacik also announced the change in the branding of Indonesian tourism industry and in 2011 the 'visit Indonesia year' will be replaced by 'wonderful Indonesia'. Moreover, the average spending of U.S. $1,100 is also expected by each visitor and the total revenue of $8.3 billion is predicted (Nenad, 2011).

Socio Cultural Conditions and Institutional Conditions:


The tourism industry of India would grow in spite of the short-term problems and issues like shortages of the hotel rooms. By the end of 2018, this industry is estimated to grow at the rate of 9.4% annually and the total industry would increase to $275.5 billion.

With increasingly use of IT services of Indian companies and more international events the tourism market is expanding currently, foreign tourists are increasing and thus in the coming years the demand of the hotels would grow. So, the hotel industry of India is expected to grow the most in the coming future.

Several players in the market has recognized the opportunity in the hospitality and tourism sector of India and to meet the increasing demand of the foreign tourist they have started opening new hotels in the country. There are around 130,000 hotel rooms in India currently and because of the increasing number of the tourist in the country this number is expected to grow.

Because of the different international events foreign tourism is expected to increase in India. Many foreigners are visiting India because of the outsourcing industry and booming IT industry in India and it would increase the number of foreign tourist arrivals. In India during 2010 foreign tourist arrivals grew at a rate of 9.3% equaled 5.58 million tourists in comparison to the total number of foreign tourist of 5.11 during 2009.

To upgrade and expand the infrastructure of the country in order to promote tourism the government has taken several initiatives such as upgrading of the national highways, airports, improving roads and improving the overall infrastructure.

There are some issues over shortages of rooms in India even today. According to World Travel and Tourism Committee (WTTC) to cover the increasing demand of the tourist in the next 2 to 3 years India needs 50,000 more rooms.

The investors have started invested in tourism industry because in the future there will be more demands of the hotels and rooms. Marriott International is one of the chief names in this regard. According to the Arnie Sorenson, COO of Marriott International, over the next five years Marriott have planned to expand its network to more than 100 hotels in India.

Roots Corporation, a subsidiary of Indian Hotels Company (IHC), has also announced its expansion plan in India and they are opening 60 to 70 hotels in 23 different locations of the country. Under the Fortune brand by 2011, 25 more hotels would be opened by ITC.


Culture and tourism minister of Indonesia has announced that 50% projected growth in the revenues will be because of around 600 different meetings, conventions, exhibitions which are being predicted to take place in the year 2011 at different places across Indonesia. So because of the different conventions and exhibitions the major growth projections are expected.

Moreover, the government of Indonesia is projecting and promoting the country as having a unique nature and beautiful culture, generous and friendly people, different varieties of food and price competitiveness are compared to other countries. Indonesia is also promoting tourism industry and other attractions in the country as economic friendly under the banner of eco cultural banner. Through the Ministry of Culture and Tourism the government of Indonesia is monitoring the tourism industry.

Different campaigns have started by the government aiming to increase the international tourism and the main focus is on the tropical destinations with different cultural attractions, beautiful blue sky and white sand beaches. For this, popular locations and destinations, such as Bali, are selected to construct the different beach resorts and hotels. Government of Indonesia is focusing on promoting the cultural tourism and it is considered to be the most significant and essential part in tourism industry of Indonesia. Tourism in Indonesia is being used as a mean of promotion and preservation of cultural heritage.

The government of Indonesia is striving to increase the investments and funds in the tourism industry as tourism industry helps in the overall growth of the economy. Lack of the investments and funds are the major problem being faced by the tourism industry of Indonesia so in order to promote an investment friendly climate and environment serious measures need to be taken.

Different policies and programs are announced by the government of Indonesia in order to encourage the local and the foreign investment in tourism industry. Package policy is the example of such policy. Under this policy different rules, systems and regulations regarding to the tourism industry of the country has revised by the government of Indonesia. For this, they have simplified the process of starting a corporation and getting a license for operations. Along with improving the area of man power and human resource tax incentives are also provided.

The tourism industry of Indonesia is reporting the positive growth in the investments and funds because of these actions and steps. The total investment was reached to the level of Rp 7 trillion last year which was contributed to 300 different business units and out of this 80% contribution is made by foreign investors.

Historical Developments in Tourism Industry:


India is famous for its historical heritage and places. From the very start India has been the favorite and one of the popular tourism destinations. The tourism… [END OF PREVIEW] . . . READ MORE

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APA Style

Tourism Industry of India.  (2011, April 6).  Retrieved August 4, 2020, from

MLA Format

"Tourism Industry of India."  6 April 2011.  Web.  4 August 2020. <>.

Chicago Style

"Tourism Industry of India."  April 6, 2011.  Accessed August 4, 2020.